Marguerite McLean
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McNeill. Shayla L Capt USAF AFLOA JACL-ULTIAFCESNCENL
[[email protected]]
Thursday, November 12,2009 2:06 PM
[email protected]
Jungels, Allan L Capt USAF AFLOA JACL-ULTIAFCESNCENL
090001-El FEA Post Hearing Brief
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FEA Post Hearing Brief-Docket 090001-El.pdf
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FEF
x, B R ~ E
1. Captain Shayla L. McNeill, 139 Barnes Ave, Suite 1 Tyndall AFB, FL
32403 is the person responsible for this electronic filing;
2.
The filing is to be made in Docket 090001 -El, In re: Fuel and
Purchased Power Cost Recovery Clausej
3.
The filing is made on behalf of the Federal Executive Agencies
(FEA)j
4.
The total number of pages is 6 j and
5.
The attached document is The FEA Post Hearing Brief.
SHAYLA L. MCNEILL, Capt, USAF
Utility Law Field Support Center (ULFSC)
Staff Attorney
AFLONJ ACL-ULFSC
139 Barnes Drive
Tyndall AFB, FL 32403-5317
850-283-6663
DSN 523-6663
Cell 850-276-5705
1
BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION
In re: Fuel and Purchased Power
Cost Recovery Clause
Docket No.: 090001-E1
Filed: Nov 12,2009
)
)
THE FEDERAL EXECUTIVE AGENCIES’
POST HEARING BRIEF
The Federal Executive Agencies (FEA) has no position with regard to the remaining
issues concerning Florida Public Utilities Company.
Regarding issues 8,9, 10,12, 13 and 15 for GulfPower Company (Gulf), there are
three concerns that were raised by the Florida Industrial Power Users Group (FIPUG) that
FEA will comment on briefly.
1.
With regard to Plant Scherer, Gulf is seeking to recover the fuel costs associated
with the plant although the plant is not included in base rates. The position of the
FEA is that the earlier decision not to include Plant Scherer in base rates indicates
the commission previously determined the plant did not benefit rate payers in
Florida. Costs that do not benefit rate payers should not be recovered, to include
fuel costs.
2. The documents provided seem to indicate that Gulf is paying affiliates for
capacity required to meet the minimum reserve requirement, while at the same
time selling electricity to affiliates at a cost below the cost of production which in
part necessitate the capacity payments.
3. The documents provided seem to also indicate that, on average, Gulf is selling
electricity to affiliates at a lower price than it would cost to produce the electricity
itself and buying electricity at a higher price than it would have been able to
produce the electricity itself. This is the case though it appears Gulf ratepayers
used approximately 40 percent less power than Gulfs estimates show it is capable
of producing.
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The second and third concerns both relate to the question of whether Gulf acted
prudently with regard to spot market purchases from and sales to affiliates. Gulf failed to put
any evidence in the record to demonstrate the prudence of the sales and purchases made
resulting in a failure to justify the transactions that do not appear to be at arms length.
In Fla. Power Corn. v. Cresse, 413 So. 2d 1187 (FL 1982), the Florida Supreme Court
said, “The requirement that utilities demonstrate the reasonableness of their fuel costs is not
-
improper or unusual. ‘Burden of proof in a commission proceeding is always on a utility
seeking a rate change, “d upon other parties seeking to change established rates.”’ The
evidence Gulf put forth in testimony, both prefiled and live, failed to demonstrate that the
recovery requested is reasonable. The explanation by Mr. Ball in his live testimony that the
inference drawn by FIPUG is not correct and instead is the result of using a marginal cost
approach to determine when to produce electricity and when to purchase it may be a start
toward answering the concerns, but it is not enough,
Presumably, it would have been possible to demonstrate how using the method Mr.
Ball described could cause the average cost of electricity bought from and sold to affiliates to
move so far from the average cost of production, and at least conceptually in the wrong
directions from a ratepayer perspective. However, Gulf did not present any evidence to
demonstrate how this actually occurred. Gulf did not cany its burden on this issue.
Therefore, Gulf should not be allowed to recover these costs through the fuel adjustor.
AllanL. J g s,
AFLOA/JA~LULFSC
139 Barnes Drive, Suite 1
Tyndall AFB, FL 32403-53 19
Telephone: (850) 283-6350
FAX: (850) 283-6219
allan.iunnels@,t,tvndall.af.mil
Attorney for the FEA
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CERTIFICATE OF SERVICE
I HEREBY CERTIFY that a true and correct copy of the foregoing FEA Post
h of November,
Hearing Brief has been furnished by electronic mail (e-mail) this ~ t day
2009, to the below-mentioned parties:
Ausley Law Firm
Lee L. Willis/James D. Beasley
Post Office Box 391
Tallahassee, FL 32302
Phone: 850-224-9115
FAX: 222-7560
Beggs & Lane Law Firm
J. StoneR. Badders/S.Griffin
P.O. Box 12950
Pensacola, FL 32591
Phone: 850-432-2451
FAX: 850-469-3331
Lisa C. Bennett, Esq.
Office of General Counsel
Florida Public Service Commission
2540 Shumard Oak Blvd
Tallahassee, FL 32399-0850
Florida Industrial Power Users Group
John W. McWhirter, Jr.
c/o McWhirter Law Firm
P.O. Box 3350
Tamp%FL 33601-3350
Phone: 8 13-505-8055
FAX: 813-221-1 854
Email: jmcwhirteramac-law.com
Florida Power & Light Company
Mr. Wade Litchfield
215 South Monroe Street, Suite 810
Tallahassee, FL 32301-1859
Phone: (850) 521-3900
FAX: 521-3939
Email: wade litchfield@,ful.com
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Florida Power & Light Company
John T. Butler
700 Universe Boulevard
Juno Beach, FL 33408
Phone: 561-304-5639
FAX: 561-691-7135
Email: john [email protected]
Florida Public Utilities Company
Curtis D. Young
P.O. Box 3395
West Palm Beach, FT, 33402.3395
Phone: 561-838-1762
Fax: 561-833-8562
Florida Retail Federation
John Rogers
100 East Jefferson Street
Tallahassee, FL 32301
Phone: 850-222-4082
Gulf Power Company
Ms. Susan D. Ritenour
One Energy Place
Pensacola, FL 32520-0780
Phone: (850) 444-6231
FAX: (850) 444-6026
Email: [email protected]
Keefe Law Firm
Vicki Gordon KaufindJon C. Moyle, Jr.
118 North Gadsden Street
Tallahassee, FL 32301
Phone: 850-681-3828
Fax: 681-8878
Email: vkaufman@kagmlaw. com
Messer Law Firm
Norman H. Horton, Jr.
Post Office Box 15579
Tallahassee, FL 32317
Phone: 850-222-0720
FAX: 224-4359
Email: [email protected]
4
Office of Attorney General
Cecilia Bradley
The Capitol - PLOl
Tallahassee,FL 32399-1050
Phone: 850-4 14-3 300
FAX: 414-9650
Office of Public Counsel
J.R. KellyK. RehwinkelP. Christensen
c/o The Florida Legislature
111 W. Madison Street, Room 812
Tallahassee,FL 32399-1400
Phone: 850-488-9330
PCS Phosphate -White Springs (Brickfield)
James BrewF. Alvin Taylor/Randy B.
1025 Thomas Jefferson St. NW
West Tower, Eighth Floor
Washington, DC 20007
Phone: 202-342-0800
FAX: 202-342-0807
Email: jbrew@,bbrslaw.com
Progress Energy Florida, Inc.
Mr. Paul Lewis, Jr.
106 East College Avenue, Suite 800
Tallahassee, FL 32301-7740
Phone: (850) 222-8738
FAX: 222-9768
Email: paul.lewisir@,umail.com
Progress Energy Service Company, LLC
John T. Bumett
P.O. Box 14042
Saint Petersburg, FL 33733-4042
Phone: 727-820-5184
FAX: 727-820-5519
Email: jobn.bumett@,umm ail.com
5
Tampa Electric Company
Ms. Paula K. Brown
Regulatory Affairs
P. 0. Box 111
Tampa, FL 33601-0111
Phone: (813) 228-1444
FAX: (813) 228-1770
Email: [email protected]
Young Law Firm
R. Scheffel Wright/John Thomas LaVia 111
d o Florida Retail Federation
225 South Adams Street, Suite 200
Tallahassee, FL 32301
Phone: 850-222-7206
FAX: 561-6834
Email: swrieht@,wlaw.net
AFLOAAJLFSC Attorney
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